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Product Origin Labelling and Consumer Willingness to Pay

Author Affiliations

  • 1Agribusiness Departement, Faculty of Agriculture, Universitas Padjadjaran
  • 2 Sociology Departement, Faculty of Agriculture, Padjadjaran University

Res. J. Recent Sci., Volume 3, Issue (IVC-2014), Pages 116-121,(2014)

Abstract

Indonesia is the sixth largest mango-producing country with a production that totals to 3.5% of the world’s current mango production, indicating that its mango production has a huge commercial prospect in the future. The main problem in marketing gedong gincu mango is the lack of quality guarantee that causes consumers to be reluctantly to pay premium prices. If consumers knew exactly where the mangos come from and could be sure of its quality, they would be willing to pay the higher price. This requires an original label brand, and would encourage consumers to pay premium prices and enable farmers to make greater profits. The survey was aimed to find out how consumer response if origin labeling exist in Mango Gedong Gincu, how consumers change in buying behavior from impor fruit to mango that has origin labeling, what domonant factors of cluster consumers believing that origin labeling assures them of good and safety product, which groups of consumers were paying higher than market priceand what consumers thought about profit and loss with regard to labeling.The research was conducted from June to September 2013 and data will be analyzed by discriminant analysis. This research find out that 60 % consumers response is quality and 74 % is save for consumption if Origin Label exist in mango; the consumption change from Import fruit to local fruit in variour income, dominant of cluster consumers believing that origin label assure them of quality and food safety are income and education,WTP Consumer more than 40 % are Consumer age > 44 years.

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